Incremental Analysis for Discontinuation Decision can have two way affect to the Business
Explanation:
1. Contribution Margin Lost- If the special eats is discontinued then obviously it would affect (decrease) the profit margin that the Business would be enjoying before the product discontinues
Less:
2. Fixed Cost Saving - This would generally increase as the expenditure of the organisation would decrease.
Depending upon how the product performed the company can be benefited as well as incur loos at the same time .Discontinuation of a product is generally done when the company is facing losses.
Answer:
2015 FAT= 4,168323393
2016 FAT= 3,87219893
Explanation:
2015 2016
sales plant 34209 38826
propierty 15768 17111
net sales 12580 13392
propierty net 3018 3899
FAT=Net Sales/Average Fixed Assets
2015 FAT=12580/3018
2018 FAT=13392/(3899-3018)
2015 FAT= 4,168323393
2016 FAT= 3,87219893
First to get the answer your self all you need to do is divide 7 in to how many hours then boom you got the answer
